NZD/USD improves to near 0.6090 as RBNZ Orr underscores necessity of restrictive policy


  • NZD/USD snaps its losing streak on hawkish remarks from RBNZ Governor Adrian Orr.
  • Governor Orr noted that while inflation remains elevated, it is trending downward.
  • Market expectations for the Fed’s first-rate cut have been pushed back due to recent US data.

NZD/USD broke its four-day losing streak following comments from Reserve Bank of New Zealand (RBNZ) Governor Adrian Orr on Friday. Orr stated that the central bank anticipates commencing policy normalization in 2025. As a result, the pair climb higher, reaching near 0.6090 during the Asian session.

Governor Orr mentioned that the economy is progressing as expected, with inflation expectations decreasing. While inflation remains elevated, it is on a downward trend. Orr emphasized the need for monetary policy to remain restrictive for some time. He also expressed expectations for economic growth to pick up in 2024.

The US Dollar Index (DXY) is slightly lower, hovering near 104.10, despite the improved US Treasury bond yields, which stand at 4.63% for the 2-year and 4.25% for the 10-year bonds at the time of publication. However, market expectations for the Federal Reserve's first-rate cut have been pushed back due to recent Gross Domestic Product (GDP) data from the United States (US), providing support for the US Dollar (USD).

The Greenback gained ground following the release of the Federal Reserve's preferred inflation gauge, the US Personal Consumption Expenditures - Price Index, which met expectations. Investors are now focusing on the final US S&P Global Manufacturing PMI for February, scheduled for release on Friday.

The US Personal Consumption Expenditure (PCE) Price Index expanded by 2.4% year-over-year (YoY) in January, down from the previous reading of 2.6%, aligning with market expectations. On a month-over-month basis, the index increased by 0.3%, compared to a 0.1% increase in the prior period.

Meanwhile, the US Core PCE, the Federal Reserve's preferred inflation measure, grew by 2.8% YoY, slightly lower than December's 2.9%, in line with consensus estimates. On a monthly basis, the core PCE rose by 0.4%, surpassing the previous 0.1% increase.

NZD/USD

Overview
Today last price 0.6093
Today Daily Change 0.0005
Today Daily Change % 0.08
Today daily open 0.6088
 
Trends
Daily SMA20 0.6124
Daily SMA50 0.6171
Daily SMA100 0.6094
Daily SMA200 0.6076
 
Levels
Previous Daily High 0.6113
Previous Daily Low 0.6076
Previous Weekly High 0.6219
Previous Weekly Low 0.6122
Previous Monthly High 0.6219
Previous Monthly Low 0.6037
Daily Fibonacci 38.2% 0.609
Daily Fibonacci 61.8% 0.6099
Daily Pivot Point S1 0.6072
Daily Pivot Point S2 0.6055
Daily Pivot Point S3 0.6035
Daily Pivot Point R1 0.6109
Daily Pivot Point R2 0.6129
Daily Pivot Point R3 0.6146

 

 

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